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Results for Quarter Ending 30th June 2004 Press kit

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July 28, 2004

Tata Motors continues on growth path
PAT up 123%, Volume growth 41%, Revenue up 46%

Tata Motors, India’s leading automobile manufacturer, today announced its results for the quarter ended June 30, 2004. Total revenue (including other income) at Rs.4286.17 Crores grew by 46% over the corresponding period in 2003 04. The Company’s growth continued with Profit Before Tax (PBT) at Rs.303.09 Crores registering a growth of 85%, and Profit After Tax (PAT) increasing by 123% to Rs.223.36 Crores from Rs.100.31 Crores in the first quarter of the previous year. However, the Operating Margins were under pressure at 12% (13.2%), due to increases in all material input costs. The Company continues its thrust on cost reduction and other initiatives to reduce the impact of such cost increases.

The continued economic growth saw a buoyancy in demand for commercial vehicles and passenger cars in the first quarter, with the industry showing a growth of 25%. Tata Motors outperformed the industry growth with its thrust on new product introductions, thereby gaining market shares in both commercial vehicle as well as passenger car segments.

The Company achieved a 41% growth in sales volumes at 84,918 in the first Quarter. Domestic sales of commercial vehicles in the Quarter were 39,877 nos. an increase of 50% and market share improved to 59.6% from 57.1%. Domestic sales of passenger vehicles grew 35% at 40,781 with the Company improving its market share to 17.4% from 15.6%. Exports at 4260 nos. grew by 17% as compared to the corresponding period last year. FOB value of exports for the Quarter stood at Rs.212.18 Crores (US$ 46.21 million), increase of 25% over the corresponding period last year (Rs.169.93 Crores; US$ 36.58 million).

The audited financial results for the Quarter ended June 30, 2004 are enclosed.

AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2004

Particulars
Quarter ended June 30,
Year ended March, 31
   
2004
2003
2004
(A)  
(Audited)
(Unaudited)
(Audited)
1 Vehicle Sales:(in Nos.)      
  Commercial vehicles
39877
26643
152195
  Passenger Cars and Utility vehicles
40781
30118
140018
  Exports
4260
3635
22046
   
84918
60396
314259
2 Vehicle Production:(in Nos.)      
  Commercial vehicles
45600
25856
159972
  Passenger Cars and Utility vehicles
42191
31673
151570
   
87791
57529
311542
3 Export Turnover (at F.O.B. value) Rs. Crores
212.18
169.93
1006.32
 
US $ M
46.21
36.58
230.23
         
(B)  
(Rupees Crores)
1 Sales/Income from operations
4244.93
2924.22
15493.52
  Less: Excise Duty
670.85
421.78
2270.30
  Net Sales/Income from operations
3574.08
2502.44
13223.22
2 Total Expenditure      
  (a) (Increase) / Decrease in stock in trade and work in progress
(249.25)
70.05
141.98
  (b) Consumption of Raw Materials & Components
2582.06
1526.65
8341.39
  (c) Staff Cost
236.14
185.59
882.49
  (d) Other expenditure
575.69
388.58
1975.56
  (e) Sub Total 2(a) to 2(d)
3144.64
2170.87
11341.42
3 Operating Profit [1-2]
429.44
331.57
1881.8
4 Other Income
41.24
10.49
58.90
5 Interest      
  (a) Gross Interest
53.60
58.68
206.65
  (b) Capitalisation of interest/Interest income
(12.02)
(4.89)
(45.39)
  (c) Net Interest
41.58
53.79
161.26
6 Product Development expenses/Amortisation (Note 2)
26.61
11.44
51.64
7 Depreciation and Amortisation
98.33
93.01
382.60
8 Profit before extraordinary/exceptional items [3+4-5-6-7]
304.16
183.82
1345.20
9 Extraordinary/Exceptional Items
  (a) Employee Sesheettion Cost (Note 3)
1.07
20.15
4.56
  (b) Provision for diminution in value of investments
48.3
  (c) Sub Total 9(a) to 9(b)
1.07
20.15
52.86
10 Profit Before Tax [8-9]
303.09
163.67
1292.34
11 Less: Provision for Taxation
  (a) Current Tax
91.67
12.58
96.00
  (b) Deferred Tax
(11.94)
50.78
386.00
  (c) Sub Total of 11(a) and 11(b)
79.73
63.36
482.00
12 Profit After Tax [10-11]
223.36
100.31
810.34
13 Paid-up Equity Share Capital (Face value of Rs. 10 each)
358.03
319.83
356.83
14 Reserves excluding Revaluation Reserve
3236.77
15 Basic EPS (not annualised) Rupees
6.26
3.14
24.68
  Diluted EPS (not annualised) Rupees
5.91
3.07
22.71
16 Aggregate of Non-Promoter Shareholding
  – Number of Shares
240270689
216874927
235239669
  – Percentage of shareholding
67.12%
67.82%
66.65%

Notes:

  1. Figures for the previous period have been regrouped/reclassified wherever necessary.

  2. During the quarter ended June 30, 2004, (a) Rs. 8.13 crores towards premium on the early redemption of Debentures and (b) Issue expenses of Rs. 28.78 crores and prorata provision for premium on redemption of Rs. 8.01 crores of Foreign Currency Convertible Notes have been debited to Securities Premium Account.

  3. The Company had charged Rs. 20.15 crores by way of employees sesheettion cost to the Profit and Loss Account for the comsheettive period in the previous year. In view of the limited revision of the Accounting Standard 26 (AS 26) on ‘Intangible Assets’, the Company reverted to its earlier accounting policy of amortising such cost over a period of 24 to 84 months, in the year ended March 31, 2004. Had the current accounting policy been followed in the previous period, the employee sesheettion cost reported in the quarter ended June 30, 2003 would have been lower and the profit before tax would have been higher by Rs. 19.91 crores.

  4. During the quarter, (a) 30,48,041 Ordinary Shares were allotted consequent to exercise of equivalent number of warrants pertaining to rights issue of 2001 at Rs. 120/- per share and (b) 19,83,949 Ordinary Shares were allotted consequent to conversion of 10,777 1% Foreign Currency Convertible Notes (2008).

  5. The Company is engaged exclusively in the business of automobile products consisting of all types of commercial and passenger vehicles. These, in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

  6. The Company has raised Rs. 939.13 crores upto June 30, 2004, towards the proceeds from the Rights issue of Convertible and Non-convertible Debentures with detachable warrants issued in 2001. These proceeds have been fully utilised for the stated objectives of capital expenditure, product development expenditure and prepayment/repayment of borrowings.

  7. In April 2004, the Company has raised the funds by issuing (a) US$ 100 Million (Rs. 438.5 Crores at issue) by way of Zero Coupon Convertible Notes maturing in April 2009 and (b) US$ 300 Million (Rs.1315.5 Crores at issue) by way of 1% Convertible Notes maturing in April 2011. In both the cases the noteholders have an option to convert these notes into Equity Shares or Depository receipts at pre-determined prices and the Company has a right to redeem subject to certain conditions.

  8. As on April 1, 2004, 15 Investor complaints were outstanding. The Company received 124 complaints during the said quarter and disposed off 22 complaints by June 30, 2004. There were 117 complaints unresolved as on June 30, 2004, out of which 116 complaints pertain to non-receipt of interim dividend, which have been resolved as of date.

  9. The Statutory Auditors have carried out an audit of the results stated in (B) above for the quarter ended June 30, 2004.

The above Results have been reviewed by the Audit Committee of the Board and were taken on record by the Board of Directors at its meeting held on July 28, 2004.

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